The PDC full form is Post Dated Check. An issuer gives this check to the recipient as a form of payment which is done in advance. A PDC follows the same format as a regular check. However, there are a few differences, the date you indicate in the upper right-hand corner of the check. The PDC includes a date for the future and will be deposited on that date while in the case of a regular check, you mention the current date so that the recipient can deposit the check on the same day.
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How to Use a PDC?
The following are the ways in which you can use a PDC to your advantage:
- A PDC can help you make staggered payments to any recipient
- You can write and submit all checks for your monthly loan payment in one go
- This saves you from the hassle of transferring money monthly
- This also improves your credibility for the bank that you have full intention of repaying the loan
- The bank deposits your check on the indicated day for clearing
- You can mention your transactions on the first page of PDC to help you keep track of your finances
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What are the Benefits of PDC?
The following are the benefits of a PDC:
- The option of a PDC allows the payer to cover the lack of funds between the dates of the issuing and depositing of the check
- One can make checks prior to the date and manage the rest of the finances efficiently
- This method helps many businessmen to run a smooth flow of finances in situations like when the owner is unable to raise funds to pay suppliers
- It also establishes the guarantee between both parties that the payment will be transacted at a later time
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